F&C and Witan the most diversified investment trusts by country
F&C invests in 37 different countries
F&C and Witan give shareholders exposure to the most countries, according to data from the Association of Investment Companies (AIC).
The trade body analysed all investment trust portfolios to build a list of the 20 companies investing in the most countries, with F&C and Witan coming out on top at 37 and 36 respectively.
Andrew Bell, CEO of Witan, said "diversifying internationally is a way to control investment risk" and "helps to reduce investor nerves in troubled times", although it should not be the driving force of portfolio construction.
Bell continued: "At present, concerns over Brexit, US-China trade relations and conflict in the Middle East are depressing economic confidence and have encouraged a lemming-like rush into government bonds yielding less than diddly-squat. The risks are real and things might go horribly wrong, but they might not.
"Today's worries seem no worse than the tribulations of the Cold War or past periods of rising interest rates or oil prices.
"Following the 2008 financial crisis banks are more tightly regulated and better capitalised, interest rates are low and, on average, declining, and there is now an increasing switch towards looser fiscal policy, which ultra-low borrowing rates have made financeable and therefore tempting for politicians.
"At some point, markets are likely to shift their focus from the depressive effects of current policy conundrums towards the monetary and fiscal policy response.
"If you focus on the rear-view mirror or the rain hitting the windscreen you are likely to collide with a lamp post. In investing, as in driving, it pays to look ahead if you want to make progress."
UK dividend cover among lowest as global cover falls to ten-year low
The top 10 was made up exclusively of companies in ‘global' AIC sectors. Four were in the AIC Global sector, with Alliance Trust and Bankers investing in companies from 26 and 24 different countries respectively.
Half of the top 10 were in the global emerging markets sector, topped by Genesis Emerging Markets, Aberdeen Emerging Markets and Utilico Emerging Markets.
Only two global equity income trusts made the top 20 - Murray Income and Henderson International Income - with one global smaller companies trust in Herald.
Meanwhile, two environmental trusts cropped up, with a plethora of emerging sustainable investment opportunities across the globe. The two that made the list were Jupiter Green and Impax Environmental Markets.
Annabel Brodie-Smith, communications director of the AIC, said that knowing their investments are spread across a wide range of different countries might give shareholders "comfort".
"Different countries will have varying economic and political environments as well as different strengths and weaknesses, so investing in a good spread of regions can make sense," she added.
"It's not surprising to see big, global investment companies top the list; however, it's interesting that some investment companies with strong sector specialisms, such as environmental or financials, are so diversified by country."
More on Investment Trusts
Most read
